The mortgage programs in Arkansas are very simple. The two most popular mortgages are fixed rate conventional loans and adjustable rate mortgages. Interest only and balloon mortgages, while not outlawed, are hardly ever used. In Arkansas conventional and adjustable rate mortgages can come in 10, 25, 20, 30 and 40 year increments. FHA and VA backed loans are available as are USDA loans in the more rural parts of the state. Mortgages that are issued in Arkansas must be non-recourse instruments. A non-recourse mortgage contract simply protects the assets of the home owner should the need to foreclose arise. In a recourse contract a lender can sue the home owner for any money lost in the foreclosure sale. In a non-recourse state the lender must assume the risk and loss.
Arkansas Mortgage Rates
Generally Arkansas mortgage rates are lower than in other parts of the country. The larger cities, such as Little Rock, will see a higher interest rate, but this rate will still be lower than country wide averages. The reason mortgage rates are lower in Arkansas is because of property values. Property values vary so much in the state that the median price range drops it below the national average. Mortgage rates will also be set by the data the banks gather on your finances. Credit score, debt ratio and employment will all be included in the decision. Down payment amount and if you are purchasing mortgage insurance will also help decide the final rate.
Arkansas Refinance Rates
Refinancing is usually done in Arkansas as a way to reduce the time left on a mortgage, reduce interest rate or to combine a first and second mortgage into one instrument. Interest rates are very comparable to the mortgage market and equal to the surrounding states. Credit and employment qualifications will be necessary and help determine rate. Type and length of loan will also play a large part on the final interest.
Arkansas Mortgage Brokers And Lenders
Arkansas has several hundred different institutions qualified to make mortgages in the state. Internet banks, regular banks, credit unions and private lenders all qualify to make loans within Arkansas. Each lender will have specific programs, down payment requirements and loan application processes. Some lenders will specialize in bad credit loans; while others in first time home purchases.